Idaho Auto Insurance Settlement Laws

• Idaho has several laws related to settling auto insurance claims. Jupiterimages/Photos.com/Getty Images

  Whether you are an Idaho resident or just passing through, you want to know the state laws if you have an accident there. Idaho regulates the time frame for insurers to settle auto repair claims, as well as how they handle repairs and the kinds of parts they can use. When you know the laws, you can improve your chances of a successful and uneventful auto repair claim.

Repair Settlement

• Idaho statute 41-1328 outlines the period during which insurers must settle auto insurance repair claims. If you have an accident in Idaho and your insurer authorizes repairs, it must pay for the work within 20 days of receiving notice of completed repairs. The company must pay the settlement to the repair facility, or to the named insured and repair facility jointly.

Aftermarket Parts

• It is legal in Idaho for insurers to use aftermarket and recycled parts for vehicle repairs. Idaho statutes 41-1328 A through D outline various regulations surrounding parts made by companies other than the vehicle's manufacturer. When an insurer authorizes these types of parts, it must clearly indicate this on the written estimate it provides to you. In addition, the repair facility must notify you that the repair includes parts of this type.

Investigations

• Statute 41-1329 lists several examples of unfair claims settlement practices that are illegal in Idaho. According to this statute, an insurer may not deny your claim without first conducting an investigation. The investigation must reasonably consider all the information available at the time.

Litigation

• According to state statute, it is illegal for an insurer to intentionally provide a low settlement amount for benefits due under the policy and force you to go to court to recover the remainder. You are entitled to full and fair compensation of all applicable benefits in your policy when you file a claim after suffering a loss.